Category: China Economy
The analysis published under this category are as follows.
Monday, February 07, 2011
China a Trade Growth Machine Investors Ignore at their Own Risk / Economics / China Economy
By: Justin_John
There are very few macro points in the world that needs to be understood and analysed more than the story of the dragon and its kids. Infact for a generation to come, we may be telling the story of the great dragon which breathed fire and consumed the eagle in the sky. What happens to the dragon after that is the plot where almost everyone has a different ending.
Tuesday, February 01, 2011
Could China Be Forced To Bring A New Global Recession by 2015? / Economics / China Economy
By: Dian_L_Chu
Bloomberg on Sunday, Jan. 30 cited a 28-page report--The Financial Crisis of 2015: An Avoidable History (pdf file below)--by Barrie Wilkinson, a London-based partner at consulting firm Oliver Wyman.
The report describes a scenario--spanned 2013 to 2015--when Western QE-induced inflation brings down China, creating a debt crisis in the commodity sector--inclusive of resource-dependent countries as well as commodity producers--which eventually plunge the world into another recession, and a new world order by 2015.
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Sunday, January 23, 2011
China Boom or Bust? / Economics / China Economy
By: Bryan_Rich
As China’s economy has continued to put up stellar economic growth in the midst of one of the worst global economic crises on record, it’s widely believed that China will lead the world out of its downturn and soon rise to global economic dominance.
So it’s no surprise that there was a lot of attention given to Chinese President Hu Jintao’s visit to Washington this week.
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Friday, January 21, 2011
China Monetary Policy: Inflation Won't Last – Growth Will / Economics / China Economy
By: Money_Morning
Jason Simpkins writes:
Investors yesterday (Thursday) were rattled by fears that China's economy is overheating after it was revealed that the country's gross domestic product (GDP) expanded by 10.3% in 2010.
However, the policy changes that will come as a result of the data ultimately will benefit both China and the United States.
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Wednesday, January 05, 2011
China Economic Outlook 2011, The Red Dragon Takes Its Next Step Forward / Economics / China Economy
By: Money_Morning
Jason Simpkins writes:
If the United States has a growth problem, China has just the opposite. The world's second-largest economy is set to grow 9-10% this year, building on its strong rebound from the global financial crisis.
Furthermore, Beijing is determined to accelerate China's transition toward a more domestically based economy, while stabilizing prices and cutting government waste.
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Monday, January 03, 2011
China’s Economy Is Being Pulled in All Directions / Economics / China Economy
By: Barry_Elias
I recently suggested it was possible to have high unemployment and inflation at the same time. Zimbabwe experienced unemployment above 90 percent while hyperinflation took over.
The basis for this is rather simple: demand for basic necessities, such as water and food, remain relatively constant irrespective of income.
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Wednesday, December 29, 2010
Monetary Tightening Threatens China’s Economic Prospects / Economics / China Economy
By: Claus_Vogt
China’s role on the global stage has grown tremendously during the past several years. And there are valid reasons to believe this trend will continue. But it will not go as smoothly as many pundits assume …
On Christmas Day, Beijing raised the benchmark deposit and lending rates by 25 basis points (bps) to 2.75 percent and 5.81 percent respectively. This is the second step in the current tightening cycle, following the first surprise 25 bps hike on October 19.
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Monday, December 27, 2010
China Hikes Interest Rates on High Inflation, Risks Hard Economic Landing in 2011 / Economics / China Economy
By: Mike_Shedlock
Inflation is running at a reported 5.1% in China, a figure most believe is on the low side. Nonetheless, China has been loath to hike rates out of fear of more "hot money" flowing in. Something had to give, and it did. The markets forced China's hand.
Sunday, December 26, 2010
China Outlook 2011 and the Next Decade, Is the Smart Money Right? / Economics / China Economy
By: Dian_L_Chu
China has been ranked as the top growing country among the G20 since 2001 and is expected to retain that title for at least another five years (See Growth Chart). However, the news coming out of China for the past three months has not been good. It is looking more and more that it is not a question of if China is a bubble and going to burst, but when.
Wednesday, December 22, 2010
Commodity Super Cycle Ripples into China / Economics / China Economy
By: Gary_Dorsch
Exactly two-years ago, - the world’s commodity and stock markets were caught in the grips of a death spiral. As revelations of the extreme magnitude of the sub-prime mortgage debt crisis began to surface, banks began cutting off funding to companies and other borrowers, despite efforts by governments and central banks to unlock jammed credit markets. Global cross-border lending by banks shrank $5-trillion in the last nine months of 2008, the sharpest fall ever recorded.
Tuesday, December 14, 2010
Chanos Expects to Cash in on His China Shorts During 2011 / Economics / China Economy
By: David_Haas
Here’s a recent interview with Jim Chanos on the critical state of the Chinese economic picture. Chanos typically makes his money short-selling overpriced markets and he’s “all over” China like stink on a pig; has been for well over a year.
Chanos believes 2011 will be his big year to begin cashing in on his China shorts. Here’s his reasoning:
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Monday, December 13, 2010
China’s Relentless Advance Continues! / Politics / China Economy
By: Sy_Harding
Wars between major countries are no longer fought on the high seas, or on land with vast armies, but in board rooms and markets. It’s now economic warfare that threatens to alter the global landscape, enriching the winners and creating hardship for losers.
It’s no longer about which country has the largest navy or nuclear arsenal. It’s about which country can win the economic battles.
Friday, December 10, 2010
Fed QE2 Creates Rapidly Accelerating China Housing Bubbles and Price Inflation / Economics / China Economy
By: Jeb_Handwerger
After QE2, analysts were looking for possible consequences of the Federal Reserve Bank’s actions. What has become apparent is that the Fed has created another bubble in China. Investors globally have transferred devalued U.S. dollars and Euros to buy Chinese property and equities. China has had to combat imported inflation with rapidly rising asset prices. An influx of capital has caused a real estate bubble, a rise in costs of basic goods and excessive speculation in the commodity markets. The Chinese Central Banks will be observing the inflation data which should be coming out this weekend and will be compelled to act aggressively to prevent China from a bust similar to the housing crisis which occurred in the United States in 2007. Yesterday’s IPO’s showed that irrational exuberance is here once again, none since I have witnessed since the late 90’s.
Wednesday, November 17, 2010
China Continuing Pointers to Strong Economic Growth For 2011 / Economics / China Economy
By: Money_Morning
Keith Fitz-Gerald writes:
BEIJING, People's Republic of China – While other investors are busy rounding up all sorts of economic data, tea leaves and fortune cookies in an attempt to figure out China's economic situation next year, I'm heading out the door once again to take a look at hairy crab prices.
Because of the timing of this trip, I'm a bit late in the season – but not enough that I won't be able to get a good reading on this surprisingly accurate indicator of China's economic health.
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Tuesday, November 09, 2010
How to Profit from China's Consumer Boom Throttling Up GDP Growth / Economics / China Economy
By: Money_Morning
Keith Fitz-Gerald writes: BEIJING, People's Republic of China – There's something inherently satisfying about waking up on a clear, crisp fall day in this bustling capital city, and seeing this headline atop the lead story in this morning's China Daily newspaper:
"World Bank Sees Change in Growth Pattern"
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Wednesday, November 03, 2010
China Economic Growth and Technological Development Milestones, Investment Opportunities / Economics / China Economy
By: Tony_Sagami
China impresses me every time I visit. The skyline is dotted with new skyscrapers that didn’t exist a year ago, gorgeous, modern, sleek bridges that belong on the cover on an engineering magazine are everywhere, new freeways have seemingly popped out of nowhere, and the hustle and bustle of construction dominates your senses.
Monday, November 01, 2010
Why China’s Economic Growth is More Bark Than Bite / Economics / China Economy
By: Investment_U
Carl Delfeld writes: Is the great Chinese locomotive destined to run off the rails?
It is, according to renowned short-seller, Jim Chanos.
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Saturday, October 30, 2010
China's Creative Accounting, Using Debt as an Instrument of Economic Growth / Economics / China Economy
By: Ellen_Brown
China may be as heavily in debt as we are. It just has a different way of keeping its books -- which makes a high-profile political ad sponsored by Citizens Against Government Waste, a fiscally conservative think tank, particularly ironic. Set in a lecture hall in China in 2030, the controversial ad shows a Chinese professor lecturing on the fall of empires: Greece, Rome, Great Britain, the United States . . . .
Friday, October 29, 2010
China's Massive Monetary Expansion and Crackup Boom / Economics / China Economy
By: Mike_Shedlock
China is pointing the finger at the US, complaining about "Out of Control" US dollar Printing by the Fed.
Read full article... Read full article...Dollar issuance by the United States is "out of control", leading to an inflation assault on China, the Chinese commerce minister said in comments reported on Tuesday.
Wednesday, October 20, 2010
China Interest Rate Hike, Once Is Never Enough / Interest-Rates / China Economy
By: James_Pressler
In a move that caught international markets flatfooted, this morning the People's Bank of China (PBoC) tightened two key interest rates by 25 basis points, its first rate hike since December 2007. Few analysts expected a rate hike any time before Q1 2011, so such a sudden hike - that lacked any accompanying discussion or explanation - triggered a wave of uncertainty as everyone scrambled to explain the move. So, along with the mob, we offer our own interpretation of today's events.
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